Coughlans Bakery Closes After 87 Years
The chief executive of the Heart of London Business Alliance (HOLBA) has condemned the UK government's business rates system after the closure of Coughlans Bakery, a beloved London chain with 31 stores across the southeast. The bakery, which first opened in 1937 and was part-owned by comedian Romesh Ranganathan, ceased trading after entering voluntary liquidation.
Co-owner Sean Coughlan expressed devastation over the closures, citing the increase in employer National Insurance contributions effective April 1 as a key factor. He stated on Instagram: "Rates have absolutely smashed local businesses, local retail."
Impact of Business Rates and NI Increases
Business rates for UK hospitality businesses rose significantly in April after the government ended pandemic relief, which had previously reduced payments by up to 75%. While pubs and live music venues received a new 15% discount, cafes were excluded from this support. UKHospitality predicted that higher rates would force two-thirds of hospitality operators to cut jobs and 15% to close.
Sean Coughlan also noted that fuel prices doubled from £3,000 to £6,000 due to the conflict in the Middle East, and recent heatwaves delivered the final blow. All 31 stores, including branches in Croydon and Coulsdon, closed immediately.
Call for Reform
Ros Morgan, CEO of HOLBA, which represents over 500 businesses and is part of the Real Rates Reform Alliance, said: "The closure of Coughlans Bakery after almost 90 years on the high street is another stark reminder that Britain's business rates system is no longer fit for purpose. It places an unfair burden on firms that invest in physical premises, create jobs, and keep our town centres vibrant."
Morgan urged the government to deliver meaningful reform, proposing a hybrid model that would levy a modest tax on online sales to permanently reduce rates for physical businesses. "It is a practical, long-term solution that reflects the modern economy, supports high street investment, and prevents viable businesses from being pushed to the brink," she added.
